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SEMINOLE HEARING POSTFO1
ED.
(Con-tinut-I from page four.)
Jones held two liares of Seminok
stock. Mr. Sikler, representing
Charleston stockholders, argued ni
immediate action. and said that there
h.d been "an ab,olute and wfanton
disregard of contract rights, both by
the trustees and the Seminole, and the
sales in Charleston were fraudulent
through the representations made."
The situation was fully argued pro
and con, Messrs. Muller and Weston
insisting on delay in behalf of the
trustees, Gen. Bellinger wanting time
for the Seminole, and Mr. Grier, Mr.
Nelson, Mr. Lyles and Mr. Huger
Sinklar arguing that time would do
no good, but that what they wanted
was for the court to get hold of the
Seminole and wind up its affairs or
all the assets would be dissipated.
The Hearing Postponed.
Judge Watts inquired if the dela-v
was asked in good faith, and only for
the punpose of securing data and time
in which to make full returns, and be
ing so assured, said that the oharges
against the trustees and officers of
the S'eminole were serious, and that
he would not take snap judgment and
h;e could not see where there would
be any harm in a week's delay, and
he therefore signed an order fixing
the hearing for next Monday at Che
raw. Judge Watts, in his ruling, said
that' "'dgal fraud" had been charg
ed, and that this is an interesting ex
pression in connection with this en
tire Seminole matter. The issue now
is whether there has been "legal
fraud" and that is for the courts to
decide.
Mr. John Y. Garlington, the real
brain of the Seminole scheme. said
they sold "in the neighborhood of
something like.$215,000 to $220,000 of
stock." or the equivalent of about. 5,
000 bales of cotton. Mr. Garlington
is wise and clever. He told the stock
holC rs who questioned him that he
knew nothing except what was in the
official records-' absolutely noti
ing "-and, these 'records were in
Chattanooga. When asked if he had
authorized certain statements to buy
ers in Charleston, he said: "I never
hbad an interview with Mr. Graff. Mr.
A. D. MeKinney was manager at Co
lumbia and gav~e the agents the dopc."
There are stoekholders now who think
that they were properly "doped," as
Mr. Garlington expressed it. The
plan of the Seminole was all right,
and it is high 'time for South Carolin~a
people to organize and manage insur
enee companies. People who took
stock saw it that way, no doubt, and
the' only question is whether their
money has been squandered or ilot.
The Seminole side is yet to be heard.
To begin with, when stock was
taken on a par basis of $100 per hun
dred shares $150 was paid. Now it
appears that $50 of this went to pay
commissons to selling agents and e.x.
penses. Out of every.$150 paid $50 .is
dissipated for agents' commisions
and expenses-at leacet such isth
testimony. Then inst..ad of organizing
a casualty company as proposed the
suggestion was made to bay stock in~
the already estaiblished Sond~ern Life'
Insufranee company, of Fayetteville,
Weethe Commissin Went.
.Now on the purchase of this stock
hinges the whole situation, but aside
from the legal statu~s it is officially
reported that commissions were paid
C. J. Hebert aggregating $74,716.85.
This much the Southern Life reports.
This particular $74,000 came from the
funds of the Sgminole company, and
according to Hebert 's contract he got
30 per cent commission. Therefore,
out of every $150 paid for stock $50
went to the field agent and for en
penses and $30 to Hebert, or he and
his friends. That leaves $70 for ac
Stual investment out of each $150 paid,
or agreed to be paid by notes. "But,''
says Mr. Clark in his testimony on
the matter of commissions, "I asked
Gar.lington one afternoon if Hebert
was to be paid anything in this trade
by way of commissions or otherwise.
He told me not one cent by way of
commissions. but he had agreed to
pay $2,000 for services rendered him
in bringing about this de,al with the
Seminole. I mentioned that to Mr.
Cooper, and Cooper's reply was,
- Why didn't you ask .me (Cooper)
if he (Hebert) got any commissions.'
My reply was, 'I had no occasion to
ask you. I did not see him with yont,
and you were there to represent the
Southern- Life. Of course, I .had no
occasion to ask you because you were
offering the stock for the Southern
Life. This adds $2.000 to the com
mission account, both sides paying."
Significant Statement.
As sinificaint hit of information is
tie hOl a r. (lark who' ~e i: hed:~f-.
as to iiow they were dividedi "HTe
tated to me," answered Mr. Clark,j
'that Hebert and Garlington had vis
Ir. Hebert.
",You h1ld)1( r C-ooper's r.(
for the money you paid him.'
"I do. signed. 'Cooper, ma:
and tre:bsurer af the~ Sonthern
Insurance Company.'
The point made is that Cooper
Garlington made the contract ii
in the $74.000 commissioi. and
all was ready assigned it to He
important if true. Mr. Garlii
says he did not get a cent of
commission. Then exhibit M s
that $22,714.26 is unaccounted
On De,-ember 12 Cooper says the
nole bought $150,000 worth of
i>r$325,000. That was the figur
ported to Mr. Clark and Mr. Gai
ton's statement of price, but by
of .amendment Cooper, of the So
ern Life, says there is $22,000 sI
the settlement. No explanatioy
made of what became of this $22
In this connection those who bc
stock need not blame others. I
trustees had put in their recei
little sentence reading "All of
fu:nds from this sale to go intc
treasury of the Southern Life." i
would not now perhaps be this v
ing.' Mr. Clark was pursuaded
the purchase was advisable.
trustees were merely stockholdc-s
took the precaution of having ar
pert report to him on the value o:
stock. The report was that the Sc
ern Life stock was worth $150,
then the trustees were.persuaded
it was worth while and economie,
buy stock in an established comy
Besides the directors of the S
nole company authorized and dirE
the trustees tj buy the Southern
stock at $216. The trustees mad,
quiry and were positively directe
buy the stock. The directors of
Seminole company are Laurens
and friends of Mr. Garlington,
were not elected by the 1,100 pr(
stockholders.
Mr. Clark, as soon as he hear,
the Southern Life Commission
dent, wrote their officers that
transaction was a breach of trus
the part of their officers and
therefore a fraud on the Seminole
Southern Life.'' He bitterly
plained of the deeeption by the S(
ern Life, as he called it.
The Southern Life people say
sold the stoek to "best advanta
and t'hat gave themr authority to
commissions. Mr. McMaster, as
as he got a toehold, notified the
thern Life people that he did not
the .situation, and they would hav
lear their skirts or get out of
State. The Seminole company
their stoek, all of it, pledged as
lateral. They are to pay the So
emn Life $162,000 before they can
:own any of their stock.
The effort now will be to gel
square deal from the' Southern
r break the trade on the groun<
"legal fraad.''
One .Eay of Hope.
The salvation of the Semi
tokholders is in the stock in
Southern Life. If that compan;
ood and they can hold their s
ma not forfeit it for nopi-paymen
teir notes there may be somet]
in the stock. It is said that
outhern Life is good. It is to be
d so. Then the Seminole folks
ut on their war paint to recover
ommission. Ger.. Bellinger says
Seminoles are not "busted.'''.
epends on the value of Southern
stock and whether they can do
hing with. t.heir outstanding contr
Mr. Bellinger said it was un
hat 'Mr. Garlington had skipped.
ad simply gone to prepare the rep
for the court. It is said t'awt al
$15,000 worth of' Seminole stoe)
reld in this territory.
'There were in Judge Watts's e<
his morning Messrs. J. S. Mu
rancis H. Weston, Joe B. Lyles
. Craig. P. H. Nelson, Willian
elson and G. D. Bellinger, of Col
ia; Huger Sinkler, of Charleston
. Owens. of Bennettsville; F.I
on Grier. of Greenwood; C.
Simms.of Barnwell; T. J. Kirkiand
amden; R. T. Caston, of Cher
. L. Asbil]. of Leesv'ille, and R.
ennis, of Bishopville. They all
esented stockholders. Mr. Sir
sked the court, with the consent
udge Wilson, to take charge ofi
ase. There was a suspicion.i
ome one in another State or si
one in this State would seek the I
mal court, but it was thoughti
after an uriderstanding that ev.ery
ould leave this most interesi
angle with Judge Watts. The
ediate question for him next N
a is whether he will le the s
e inailiit-.
Ag -t I:'i
-~ ~ ~ ~ ~ ~ R 2- ,~'L-"~2
Gay
,t to
L
Maes
Life;m r
say -
volv
het
EXTENDS
th.
hows
hor. PATRONS
stock
e re
-ling
Way
)AMERR
000.
iught
F the
pt a
the
the
-here
tha| A HAPP
The
He
1 ex
C the -
)Uth- -
and
tha't
al to
an'.
It is with happy hear s
!,ted
Life .greetings for we have I
e in
d to more holiday goods in
the
men in the same length-of
aend therefore, no calamity
a of and are more anxious i
inci-i
the THE GREATEST DAY
'was
ana, -
o-I We can hear the me
uth
S have been attached to<
be merrier this year the
payWe trust to make a
so"- shelves of all holiday
e to I end. we have greatly ret
this
has cles and books in our s
Cob call on tomorrow, Chri:
getI Courteous clerks are at
Life
1 ofmagitwhcyoca
nole
amnthheryeuc
t of
ing -
the
3op
the
hat
ife P EE T
mfy
-at.
true
He W aearaym
orts oia raeadw
:mrtwilbcareovri
Thrwlllermay -
aim
C;.
aw;prprdtsevyo
. E.
rep
ams
of
hat
hat
ome'
'ed
~hat
one
ing
im
amngteoarypuc
ar ooig o,-n
godwaelwl mv
will be c~arrevri
ro ITS FRIENDS.
BEST WISHES
V CHRIST
==AND -
Y NEW I
that we send you our sincer
iad a good season. In fact w
the p ist few weeks than w(
time for several years pa;
kicker, but are in love wi1
ow than ever before to plea,
OF THE YEAR IS ALl
rry sleigh bells already ring
~ld St. Nicholas' new autornol
mf ever before,
t GRAND HOME RUN anc
goods. To the accomplishr
:iuced our prices on the rern
ore. We will be delighted
itmnas Eve, and look over wh
vaiting your call, and we feel
ate you will be pleas:d with
ra find on our counters and si
in the community were ur
asers and for these we have
will take great pleasure in
(1 Trifles at Ou,
FOR EVER I
t with unusual success in h
are determined that if low
the goods we have in st<
to the New Year.
!ho even the few days after
those who perhaps, in the rt
ie Christmas holidays, they
THIS WORRY YOU becat
in good style.
IIRISTMAS T
4
tore
AND
FOR
M]AS
rEAR
3 Christmas
e have sold
have done
t. We are,
th our trade.
3e you.
OST HERE
ing as they
ylle and will
I clear our
nent of this
laining artI
ohave you
at we have.
sure if you
the Christ
~elves. We
able to be
what they
catering to
r Store
'BO DY
and ling the
prices and
ck nothing
Christmas
ish of prep
have over
ise we are
D ALL